Mustang Minerals Corp.: Drilling Begins at Mayville Property

TORONTO, ONTARIO -- (Marketwire) -- 01/24/11 -- Mustang Minerals Corp. (TSX VENTURE: MUM) today announced that it has commenced a drill program at the Company's Mayville Copper Nickel Property located in southeast Manitoba. The property is located approximately 35 km north of Mustang's Makwa Nickel Project where the company has announced that a feasibility study is commencing for an open pit nickel project.

Mustang completed drill programs at the Mayville Property in 2005 and 2006. The drilling outlined a zone of copper-nickel-pgm mineralization. A NI 43-101 compliant resource estimate was calculated on the Mayville M2 Zone at that time. The Mayville M2 open pit resource was updated early in 2010 using more current metal prices. (9.2 million tonnes grading 0.61% copper and 0.23% nickel - see last paragraph of this release and press release dated April 15, 2010).

A number of drill targets have been generated at the Mayville property including copper nickel mineralization associated with the Hititrite occurrence which is located 1 km southeast of the Mayville M2 Zone. Four surface grab samples taken by Mustang from the Hititrite occurrence during the 2010 field season contained elevated copper nickel values with the highest grab sample value assaying 1.1% copper, 0.7% nickel, 6.8 ppm silver and 494 combined Au Pd Pt. This surface occurrence corresponds to historical and recent geophysics. The area has not previously been drill tested. Several VTEM anomalies identified in the region will also be drill tested during this exploration program.

Owyhee Property Agreement

Further to the news release dated January 14, 2011 the Company wishes to clarify that it has entered into a revised option agreement over a total of 22 mining claims comprising 4,507 hectares from Norman Reed Paterson et al. ( the Owyhee Property Option ). Terms of the option call for the issuance of 120,000 common shares of the Company in the first year ( subject to approval of the TSX Venture Exchange ), payment of $15,000 on the first anniversary date, $25,000 on the second anniversary date and $100,000 on the third anniversary date at the option of the Company.

There are no work commitments on the claims pursuant to the Agreement. Terms of the agreement amend the terms of the previous option agreement dated January 22, 2007 under which the Company made work commitments of approximately $400,000 and paid total cash consideration of $5,000 to Owyhee.

About Mustang Minerals Corp.

Mustang Minerals has two open pit deposits located in southeast Manitoba. At the Makwa Project a NI 43-101 reserve estimate completed in Feb. 2010 by Micon International Limited outlined 9.855 million tonnes in the Probable category containing 0.541% nickel, 0.113% copper and 0.433 g/t PGM. The Company's Mayville Project is located approximately 35 km by road from Makwa and has a NI 43-101 Indicated Resource of 9.227 million tonnes containing 0.61% copper, 0.23% nickel and 0.174 g/t palladium. (Scott Wilson RPA update March 2010).

Carey Galeschuk P.Geo is the Qualified Person for Mustang Minerals under NI 43-101.

To find out more about (TSX VENTURE: MUM) visit our website at www.mustangminerals.com.

We seek safe harbour.

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, 'forward-looking statements'). Such forward-looking statements may include the Company's plans for its mineral projects in Manitoba, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risk, uncertainty of production and capital costs estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of nickel and other metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Management Discussion and Analysis for the most recent financial period and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.

Shares Outstanding: 154,598,233

Contacts:

Mustang Minerals Corp.

David Black

Investor Relations

416-955-4773
info@mustangminerals.com
www.mustangminerals.com